Liddy blasts Grassley in internal memo

AIG man-on-the-grill Ed Liddy lashed out at Sen. Charles Grassley (R-Iowa) in an internal company memo for suggesting the insurers execs ought to commit ritual suicide for destroying their company and imperiling the U.S. economic system.

“The public reaction, fanned by screaming headlines, is understandable,” wrote Liddy, who was appointed in September to run the New York-based insurer after a government rescue. Still, some criticism of the company following $165 million in bonuses to employees of the unprofitable Financial Products unit has been excessive, he said.

“A statement by a United States senator that AIG employees should consider suicide is
unfathomable, especially for one of our nation’s leaders,” Liddy said in the letter, obtained by Bloomberg News. Sen. Charles Grassley, an Iowa Republican, yesterday said he wants “contrition” from company executives after previously telling Cedar Rapids, Iowa, radio station WMT they should “resign or go commit suicide.”

Grassley has said he wasn't seriously suggesting anyone should kill themselves — but that they should be deeply ashamed.